Given:
The principal = $ 4000
The rate of interest = 22 %
To find the loan amount a) after 1 year and b) after 3 years.
Formula
Loan amount is
[tex]A = P(1+\frac{r}{100} )^{t}[/tex]
where,
A be the loan amount
P be the principal
r be the rate of interest and
t be the time.
Now,
a) Taking, P = 4000, r = 22, t = 1 we get,
[tex]A = 4000 (1+\frac{22}{100} )^{1}[/tex]
or, [tex]A = 4880[/tex]
Again,
b) Taking, P = 4000, r = 22 and t = 4 w eget,
[tex]A = 4000(1+\frac{22}{100})^{4}[/tex]
[tex]or, A = 7263.39[/tex]
Hence,
a) The amount of loan after 1 year is $ 4880
and b) The amount of loan after 4 year is $ 7263.39.
